### Title: Former Real Estate Mogul Agrees to Plead Guilty in $40 Million Ponzi Scheme

The former head of a prominent HomeVestors of America franchise has consented to plead guilty to federal wire fraud, admitting involvement in a vast Ponzi scheme that deceived investors out of nearly $40 million. Federal prosecutors in Texas revealed that Charles Carrier defrauded 80 victims since 2018. Despite agreeing to plead guilty to just one count of felony wire fraud linked to a $200,000 transaction, Carrier acknowledged the wider fraudulent scheme as part of the plea deal and has agreed to pay an undetermined amount of restitution.

Carrier, who owned the Dallas-based C&C Residential Properties, previously managed one of the most successful HomeVestors franchises, which operates under the famous "We Buy Ugly Houses" slogan. However, HomeVestors terminated his franchise in October 2024 after a tip-off revealed his deceptive activities. The company has since filed a lawsuit against him for exploiting their trademark. Carrier has yet to respond to these legal actions.

A recent ProPublica report disclosed the extent of Carrier’s activities, which affected a diverse group of investors throughout Texas, including both affluent businesspeople and retirees who relied on their investment income. Court documents indicate that individual losses ranged from $35,000 to $11.6 million. This information emerged just two weeks after the ProPublica article.

Carrier's operational model involved using loans from investors to finance his house-flipping venture, assuring that each loan was secured by an ownership interest in a property and promising 8%-10% interest in monthly installments. Initially, investors received consistent returns. However, starting in 2018, Carrier began taking multiple loans on single properties, sometimes issuing unrecorded deeds and accumulating more debt than the properties' values justified. Court documents reveal that Carrier forged signatures and notary stamps to sell properties without notifying the investors or settling their debts, using the funds to pay off personal expenses and obligations to earlier investors.

The plea deal's singular charge has left many victims outraged. Ron Carver, who personally lost $300,000 while his late father lost $200,000, denounced the arrangement as inadequate punishment. However, Carrier’s attorney, Tom Pappas, argued that defrauding investors was never Carrier's intention, suggesting that market shifts overwhelmed his business plans.

Despite the limited scope of the plea deal, the court will consider the totality of the fraud in sentencing. Carrier has agreed to an asset liquidation process, overseen by prosecutors, to contribute to restitution, though the final amount owed remains contested. Pappas acknowledged that Carrier is likely to serve prison time, but emphasized ongoing efforts to minimize investor losses.